3 valuations in Material ledger
Hi,
My client's requirement is as follows:
1) Legal valuation has to be in Local currency but on Actual Costing
2) Profit Center Valuation in Local currency but on standard costing - same as Group valuation
3) Group Valuation in Group currency in standard costing - Group valuation
Is this possible when, Actual costing Material ledger implemented?
I imagin, Legal valuation field in Material Master will be updated by periodic unit price when we run CKMLCP. Then Profit center valuation field in the Material Master will be updated when we run CK40N in standard costing PC valuation costing run. Then again we will run ck40n in standard costing for Group valuation to update Group valuation in Material Master.
If my client opts to run ck40n for legal valuation, then he should also be able to mark and release standard cost new price, in Legal valuation field of material master and actual costing will not release standard price for new period.
The requirement is typically complicated, as my client wants to maintain his Global template, though one country comes under actual costing requirement.
I would like to dig out answers from real time experience please.
Cheers,
Ashok
I can give you some information but not everything. I have gone through the deployment of material ledger using 3 valuations, but not the ones you are using. We used Local, Group and Group at Group. All 3 are at actual costing. What this means is that the local currency is the currency in the country where the plant exists. The group valuation is a straight conversion to US dollars from the local currency based on the currency conversion tables M and P rates. Note that both of these first two currencies can include intercompany profit if reflected on the transferring sales order between companies. The Group at Group is the US dollar conversion without the intercompany profit. We find this works for our business.
The other thing about material ledger is that you need to have a standard cost estimate so that material ledger can keep track of the cos component structure. The way it works is as follows:
Say the standard estimate shows labor=$100, materials=$200 and overhead=$300 for a total cost of $600. All transactions in the month using this material use the $600 standard. Now, when material ledger is run at month end, the PUP (periodc unit price) is calculated and let us assume the PUP values are labor=$150, materials=$250, overhead=$350 for a total PUP of $750. Material ledger already has tables with the details of the standard components against every transaction. Now it will apply the remaining adjustments totalling $150 to the proper cost components for COPA purposes. This is pushed to COPA using transaction KE27. Think of it like this...Actual cost is equal to standard ($600) plus/minus variances ($150).
Therefore, you always should have a standard cost estimate when using material ledger. At least that is my usage and understanding. I hope I provided useful information for you in some way.
David
Similar Messages
-
FIFO Valuation with Material Ledger !
Hi,
How do we accomplish FIFO Valuation using Material Ledger ?
We have activated the Material Ledger, with Single - Level Determination; Standard Price S. On execution of Single-Level Price Determination, we get the Periodic Unit Price -- which is the Weighted Average Price for the Receipts for the period involved.
I came across SAP Forums, which claim that Material Ledger is the FIFO Valuation on real-time basis. However, this doesn't seem to be true. The Goods Issued are assigned the Periodic Unit Price (calculated above -- i.e the Weighted Average Price ).
In addition, we have Configured the FIFO Balance Sheet Valuation Procedure, through the MM menu. The FIFO Value for the Material is giving weird results. Adding the total Inventory for all the Receipts till date and over-riding the period selection for Single Receipts. For monthly receipts, the system just gives the Weighted Average Price again.
The Business is expecting the FIFO valution for the Inventory Balance on Monthly Basis. ( We are using Material Ledger, so that we can roll-up this FIFO Valuation of the Raw Material ito Gross up into the Finished Product
-- ThanksHi Kenny ,
BASIC STEPS THAT CAN BE FOLLOWED FOR ENDING INVENTORY VALUATION :
Ending Inventory is valued as per FIFO calculated through following steps:
Run the price calculation (Txn: KSII) u2013 check that all auxiliary Cost centers are zero
Run Txn:MRF3 (summarization of documents for the FIFO calculation.)
Run MRF1 (calculation of FIFO)
Check if the FIFO calc. is correct via MR35
After ML run the ending inventory value should be equal to the value in MR35 and so balance amount not yet loaded to ending inventory through FIFO valuation is posted to consumption
Exception: If total receipts for a period is less than ending inventory quantity .In this case the EI is valued at weighted average
Please check wether the steps have been properly followed and the execption doesnot exists..
Also, hope your Price Determination is "3" and price control is "S" in Material Master..
Regards
Sarada -
Is it possible to have 2 or more standard prices for a single material e.g. one price for imported material and one for in-house produced material. If it is possible then what will be the effect of this when material ledger is activated?
Hi,
Yes we can use more than one standard price for a single material by using split valuation.
You can use split valuation with Material Ledger:
Assume that two valuation types are required.
Valuation Type-1 for imported material
Valuation Type-2 for in-house produced material
Material master price control =S for Valuation Type-1,
Material master price control =S for Valuation Type-2,
Material master price control =V without valuation type (header level).
Price determination indicator = 3 for header as well as each valuation type.
Good receipts and Goods Issue will happen for each valuation type.
At month end after Actual Costing Run. the material valuation will happen:
Header level (weighted MAV of both the valuation types)
For Val type-1(weighted MAV of this valuation type only)
For Val type-2(weighted MAV of this valuation type only)
Price variances of valuation type will be carry forward to next level, if this product is consumed at next level.
You can find the Actual costs at each valuation type level in MM03 or CKM3 or CKM3N.
Hope the above example provides some inputs to you.
Please check and confirm.
Thanks and Regards
Binoj M D -
Split valuation - Header Material - Price det. 3 - Matl. ledger active
Hi,
We have split valuation along with Material ledger and Actual costing active.
My client wants to keep price determination 3 / V for Header Material as it defaults 3 / S while creating subbordinate materials i.e., by valuation types.
Per SAP, the requirement is Price determination 2 and Price control is V for Header Material.
My client questions, what is wrong in keeping 3 in Header level?
Do you have any input for this? as I have only answer, as it's the standard configuration and impact unknown.
AshokHi Ashok ,
The materials with split valuation are there in the MM valuation tables MBEW, EBEW, QBEW with the field 'valuation type' BWTAR filled . The header segment (with field valuation type blank) is only for intermal use of the system .
For such materials with valuation type blank (the header segment of material with split valuation) in Material Ledger only the table CKMLPR contains information, the rest of the tables are empty .
The header segment has always price control V. However, the price of the header segment is NOT a moving average price. It is the weighted average price of all valuation types.
Therefore with a Split valuation scenario the materials are recorded in the system with the field BWTAR not blank and with its own price control independently of the header segment
Hence , i think its immaterial of what ever Price Determination you put in Material Master for header material and hence SAP has recommended "2" for the same . Having Price Determination "3" will not have any impact.. i believe...
Regards
Sarada
Edited by: Sarada Sankar Sil on Nov 16, 2010 9:48 AM -
Material ledger is not active in valuation area C002
Dear All,
I have a Scheduling Agreement for a material 'A' with Vendor 'V' with diff prices with validity dates, I did the GR & when i am posting the invoice thro' miro, system is throwing error as above Material ledger is not active in valuation area C002 Why should I activate the material ledger here ? Pls suggest how can i solve this ?
regds,
KalluHi
For a Particular material, Material Ledger is active or not? Can be checked in Accountig view of Material Master.
Why we need Material Ledger?
A fundamental task of the material ledger is carrying inventories in multiple currencies and/or
valuations.
Material inventory values are normally carried by the SAP system in one currency. The material
ledger component enables the R/3 System to carry inventory values in two additional
currencies/valuations. Therefore, all goods movements in the material ledger are performed in up
to 3 currencies or valuations. Currency amounts are translated into foreign currencies at
historical exchange rates directly at the time of posting. Businesses such as those in highinflation
countries can therefore carry their inventories in a more stable currency (such as US
dollars). This reveals inflationary effects on inventory values.
If you use transfer prices to represent value flows in your company in different
valuation views, you must use the material ledger. This allows you to carry your
inventories in three different valuations (legal valuation, valuation for reporting
purposes, and profit center valuation).
Before activating the material ledger, make sure you know which currencies and valuations
you want to use, because you cannot go back and change the setting.
Activating the material ledger is a prerequisite for using multiple valuations.
Thanks
Raman -
Material ledger is not active in valuation area S001
Dear All,
I have created a Scheduling Agreement & did the GR. When I am doing invoice posting system is throwing error as Material ledger is not active in valuation area S001
What might be wrong here ? For same material if I create PO then everything is working fine. Problem is only with SA.
regds,
CBHi,
Please check your Material Ledger Activation setting for the Valuation AreaC002 in T-code OMX1. The Check box for the ML activation against the Valuation Area-S001 may be ticked. After activation/ticking this box, T-code CKMSTART was not executed to complete the ML activation. If you want the activation of Material Ledger, you have to run T-code CKMSTART to complete this ML activation or Otherwise uncheck this box. I hope this step will resolve your issue.
Regards
appalas -
Valuation area not yet productive with material ledger
While doing goods receipt at MB1C,i got the below error:
The description of the error is given below
Valuation area XXX2 not yet productive with material ledger
Message no. C+020
Diagnosis
The material ledger has been activated for the valuation area but material data has not yet been converted in this valuation area.
Procedure for System Administration
If you want to work with the material ledger, choose Accounting -> Controlling -> Actual Costing/Material Ledger -> Utilities -> Production Startup.
There you can convert the data for the material ledger by following the instructions in the online documentation.
Note
Setting the material ledger to productive cannot be undone.
See also:
Actual Costing/Material Ledger in the SAP Library.
The implementation guide for Actual Costing/Material Ledger.
Can you kindly suggest me how to fix this error.
Regards
SaberaHi Sabera,
The Valuation Area is not activated for your material ledger. Go to SAP Access>>Accounting>>Controlling>>product cost controlling>>Actual Costing>>environment>>Production Start up>>Set Valuation area as productive.
If you already activated Valution area in to Productive Statge.
Then go to T.Code OMX1 and for your valuation area XXX2 tick the ML activation box.
the error wont come
regards
srikanth -
Material Ledger Functionality with Non Valuated Sales Order Stock
We are in the process of setting up Make To Order (MTO) with Non Valuated Sales Order Stock. We currently use the Material Ledger in our other businesses that use Process Orders.
Does the Material Ledger functionality support MTO with Non Valuated Sales Order Stock? I have been testing this and have not yet figured out how to get ML postings. We are using production orders that settle to sales orders. We do not bring this into inventory, the costs reside on the sales order.
If this functionality does exist, I would assume I need to configure the Material Update Structure but I cannot find any documentation on this.
Any help would be appreciated.
Regards,
GregHi Greg,
no, material ledger will not be able to calculate and allocate actual costs for the sales order in the scenario you describe. It would of course, if you used the valuated sales order stock.
Generally SAP sees in the valuated sales order stocks (avaliable since 3,1 or something) a great improvement and no real reason to use still the non-valuated scenario.
best regards,
Udo -
Material Ledger Conversion in a Parallel Valuation Scenario
Hi All,
I'm working in a scenario where the Material Ledger is already active (without multiple currencies - in other words, with the local currency).
We would like to activate parallel valuation introducing a new currency type (group currency).
We have already read SAP Note 120380 - "Subsequent activation of multiple valuation approaches" where the preservation of ML historical data would involve a SAP intervention.
It is not clear which kind of activities SAP should do in order to preserve ML historical data, i.e. which kind of data should be involved in a potential ML conversion data process.
Any help will be GREATLY appreciated.
Regards, ALDO26X1Hi Udo,
first of all thanks very much for your answer.
As described in the note 120380 we are in the following scenario:
The ML is already active (without multiple currencies - in other words, with the local currency)
B) You now require historical data: In this scenario, you must set a new currency key in the ML tables. The fields are filled as start
values with the posted transaction data in local currency (depending on the currency, either transferred or translated). This procedure is
very complicated and can be carried out on a project basis only. Contact SAP if you want to do this.
Unfortunately it is not clear which kind of impacts this procedure would have on the actual data and which are the new values introduced (only stock values in the new group currency for MM periods?).
Thanks for you cooperation.
Kind regards, ALDO26X1 -
Alternative valuation run methodolgy for material ledger
Hi Experts
Does someone can explain me how to customize alternative valuation run in SAP and how to use it.
Do I have to run it from CKMLCPAVR or from CKMLCP.
Can I run for same plant and same period the AVR in CKMLCP ?
On the screen of CKMLCPAVR I don't have nothing in Creat Cost estimate ??
THanks and regards
DjamelHi Djamel ,
1. Purpose of Material Ledger Run (CKMLCP) is to calculate actual cost of the product .. and you can update material master with actual cost ( optional step).SAP uses weighted average methord when calculating actual cost.
2. Purpose of Alternate Valuation Run (CKMLCPAVR) is to have a actual cost for analysis purpose . You can use weighted average methord or use can use FIFO , LIFO valuation methord also . Ifd you want to use LIFO/FIFO methord .. you have to configure LIFO/FIFO customization and use the standard BADI give in the SPRO menu .
3. CKMLCP and CKMLCPAVR have no depencies and you can run that for same plant .. or you can run anyone of them . Both the purposes are different .
4. On the screen of CKMLCPAVR I don't have nothing in Creat Cost estimate ?? Implement SAP Note 659447 - No process steps in AVR cockpit ... it will solve your issues .
5. For CKMLCP.. OBYC settings are as per transaction key "BSX" ... OSS Note : 908737 - Post Closing in Material Ledger
6. CKMLCPAVR -- OBYC settings are as per transaction key "BSD " .. as if required manual entry has to be done to have actual costs . So , inventory account must have manual updation tick in GL master
7. To sum -up... OBYC settings you have to do for CKMLCPAVR and any valuation approach you use other than default SAP weighted avergae methord ( LIFO or FIFO)
Hope it clarifies ... Do revert bac for any further clarifications..
Regards
Sarada -
Error Message :Valuation area 1000 not yet productive with material ledger
Dear Floks,
I need some clarification to get rid of this error message and move further.
While saving the PGI I am facing the follwoing error message: "Valuation area 1000 not yet productive with material ledger----
The material ledger has been activated for the valuation area but
material data has not yet been converted in theis valuation area."
Plese respond with the solutions ASAP.
Thanks in advance.
Regards
ANGKSHello Padmaja,
You will to check the following before activation the Val.area
1) OMX1: Check if ML is active against the plant IF NOT
2) Use tcode CKMSTART - Enter Val area - EXECUTE.
Regards,
Manoj Reddy -
Valuation area HDQF not yet productive with material ledger
Dear all,
When i PGI, there is an error: Valuation area HDQF not yet productive with material ledger.
Pls help me to resolved.
Thanks & Regards,Hi Quang,
Please run CKMSTART tcode and give that plant no(HDQF). Execute the process and then click on Confirm button in the dialog box.
Hope this helps.
Rgds,
Antima -
Material Ledger with Split Valuation Type 'X' with FIFO
Hi,
The requirement from the customer is to have Raw Material, Intermediary and Finished Products valued at Actuals and on a FIFO basis. According to me, this is possible only if we activate Material Ledger, have batch split valuation u2018Xu2019 as the valuation type and have a batch search strategy which does a FIFO. Are there any technical issues with this solution? Or is there a better solution? Is any organisation ever using this solution for a similar requirement? As an extension of this requirement, how does commodity trading companies running in SAP handle their inventory and COGS valuation?
Thanks and Regards
Shivram.Hi,
Using Material Ledger with batch management and split valuation of each batch ("X") leads to most aaccurate FIFO valuation result, however, depending on how many material and batch the customer has, huge number of materials will be processed and it will affect the performance issues. You should check the number and expected period-end time frame scheduling at least.
Financial responsible tell you to need this kind of solution (detailed FIFO calculation)?
They usualy needs to get simple FIFO valuation, meaning they don't care each individual logistic material movement as FIFO, but only care of periodic FIFO. I know, it depends on Finacial responsibes or their auditors, so it's also not general.
Please double-check the new FIFO valuation function for Material Ledger with using Periodic Closing and AVR. Some information is in SAP Note 1431829 and 1247053. Related transactions are there, CKLMBB_xxxx under Actual Costing/Material Ledger -> Balance Sheet Valuation Procedures. I couldn't find any official documents for Material Ledger + FIFO valuation (like Release Notes).
Hope this will be an additional option to yours.
Best regards, Takashi -
0COPC_C04 : Material Ledger Inactive for valuation area
I ran RSA3 for 0CO_PC_ACT_02 and 0CO_PC_ACT_05 and I get 1000 records respectively. I ran the info package to load this data into BW to 0COPC_C04 . I am getting a message in the status tab " Job termination in the source system". When I look at the job log , it says " Material ledger not active for abcd Valuation area".
SO I went to OMX1 and I beleive that a while back there was a change to do company code valuation , which got changes to plant valuation ,so this is what I see in the screen:
Valuation area = 0001
Company Code = abcd
Price Det. = 3
and there is this one records which shows :
Valuation area = abcd
Company code = abcd
Price determination = 3
and it is not check marked under ML Act . This is only in the dev box , it was fixed in QA and Prod. But never fixed in Dev.
I am not sure , what to do , also I am not sure if this is what is causing the problem.
ThanksCan some one guide me?
Thanks -
GR/IR account problem with material ledger
Hi,
I just found an issue as effect of material ledger implementation.
after the material ledger is active, when we post a transaction in foreign currency (invoice receipt), the LC 2 amount of GR/IR account is somehow different from the document amount, and the difference is transferred into Material price difference account that we maintain in OBYC - PRD transaction.
because of this, the LC2 amount of GR/IR account can't be cleared.
any suggestion, please?
thanks,
Nasikhinhi,
It will affect your valuation for the document, which are still open..
You shd run this only after closing all documents and completing whole MM cycle..
Once this is run, you can't go back and make settlements...
So, beware...
Regards
Priyanka.P
Maybe you are looking for
-
Every time I try to launch Photoshop it stops working. Adobe customer support was not able to help me resolve the issue. Does anyone have a fix? Thank you
-
I changed my AppleID / email address after my old email expired, and now whenever I go to sign into iCloud on my computer it still shows my OLD AppleID in the log-in and it won't let me change it. So I can't sign into iCloud! I can still sign into iT
-
I rented 4 movies yesterday but only 1 is now showing on my rental list, i went to re-download but it is not showing them under purchased. It does show that i paid for them all...any suggestions??
-
Is there any way to save all of my imessages with a person on to my computer for free?
I've looked at multiple programs but they all cost money. Is there a way to save an entire imessage conversation with a person on to my PC for free? I backed up my phone on itunes and when I looked at the backup I could not find my texts in any of th
-
Got a new I phone moved all data of old one phone want to sell my old phone but if I delete data of old phone will it go off my new phone